This excerpt taken from the CTRP 20-F filed Jun 22, 2005.
The Group receives referral fees from travel product providers for packaged tour products and services through the Groups transaction and service platform. Referral fees are recognized at net commission after the packaged-tour products and services are sold and rendered.
Shanghai Huacheng and Shanghai Ctrip Charming conduct domestic and cross-border travel tour services. Revenues, mainly referral fees, are recognized at net commission after the services are rendered. In case if Shanghai Huacheng and Shanghai Ctrip Charming undertake the majority of the business risks and acts as principal related to the travel tour services provided, revenues are recognized at gross amounts receive from customers after the services are rendered.